Cinema operators in Australia and New Zealand are seeing a post-pandemic recovery driven by both traditional blockbusters and the rise of independent, internet-native films. According to Hoyts Group chief executive Damien Keogh, 2024 box office figures are tracking to be the strongest since the onset of Covid-19, as younger audiences increasingly seek out the social experience of the big screen.
The Rise of Independent “YouTube-Born” Cinema
While industry reliance on major superhero franchises remains, the 2024 box office has been defined by unexpected hits. Independent films such as Backrooms and Obsession have generated significant revenue, with Obsession alone surpassing $3 million at the New Zealand box office. These projects, created by filmmakers who established audiences on platforms like YouTube, have effectively bridged the gap between digital content and traditional theatrical distribution.
Keogh noted that these titles were not initially on the industry’s radar, yet they have successfully mobilized a Gen Z demographic. He attributed this shift to a growing desire among younger viewers to trade private, screen-based consumption for the immersive, communal environment offered by a cinema.
Did you know?
Hoyts has been operating for over 100 years, currently managing a network of 62 theatres, 500 screens, and 57,000 seats across Australia and New Zealand.
Infrastructure Upgrades and New Projection Technology
To capitalize on the return of audiences, Hoyts is planning a significant expansion of its technical offerings in New Zealand. While Event Cinemas currently operates the only two IMAX theatres in New Zealand, in Wellington and Auckland, Keogh confirmed that Hoyts will introduce an IMAX presence to the New Zealand market within the next 12 months.
The strategy extends beyond IMAX. The company is set to roll out a dozen new ScreenX auditoriums, which utilize side-wall projection to create a 270-degree viewing environment. Furthermore, major venue refurbishments are scheduled for the Riccarton, Te Awa, and Sylvia Park locations. Regarding the Sylvia Park site, Keogh stated that following the planned renovations, the company anticipates the location could become the highest-grossing cinema in the country.
Resilience in a Challenging Economic Climate
The cinema industry has faced a volatile half-decade, contending with the impacts of global lockdowns, a significant writers’ strike, and the dominance of streaming services like Netflix. Despite these headwinds, Keogh maintains that the sector is returning to a stable, pre-Covid release rhythm.
He further suggested that the cinema business model remains historically resilient during economic downturns. “One thing that cinema has been renowned for over a long period, and Hoyts has been around since 1908, is we’re mildly counter cyclical, that we are an affordable experience when times get tough,” Keogh said.
Frequently Asked Questions
What is IMAX with Laser?
It is a high-end projection technology that utilizes laser light sources to provide superior visual clarity, brightness, and audio quality on large-format screens.
What is ScreenX technology?
ScreenX is a multi-projection system that extends the film onto the side walls of the auditorium, creating a 270-degree immersive panoramic experience.
Is Hoyts the largest cinema chain in New Zealand?
No. According to Keogh, Hoyts is the number one chain in Australia, but it currently sits behind Event Cinemas in the number two spot in New Zealand.
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